In current market conditions, the best way to nurture the skills and profit margins of a Scottish company is to grow it abroad, advises chairman and partner at Scottish independent accountancy firm Campbell Dallas LLP, Ian Williams.
The links between Texas and the North-east of Scotland are well known. The latter borrowed the native oil and gas pioneers from the US to kick-start its industry in the North Sea.
Now, the UK Continental Shelf is established in its own right and is seen as a testing ground for projects with international potential.
The region sends thousands of experts with years of knowledge to work in all parts of the globe.
This won’t change any time soon.
As energy professionals meet under the roof of the NRG Center for OTC in Houston, they do so knowing that there is a world of opportunity at their finger-tips.
In the UK, government department UK Trade and Investment (UKTI) has identified nine countries which offer High Value Opportunities (HVOs) in the oil and gas sector.
In total, these offer UK companies access to more than £8 billion of opportunities up to 2017/18. Houston provides an ideal stepping stone to the two Latin American nations on the list, Brazil and Mexico.
Operators and service companies have divested their businesses as the oil price remains low. Major service companies are selling off assets they no longer see as core to their future activity.
They are leaner and poised to make the most of business in new territories. Even at $110 a barrel, North Sea projects had slowed, with an emphasis on pre-project work and delays in new fields coming on-stream.
The number of links with peers in foreign nations has never been higher.
In March this year, as Chancellor George Osborne announced an extra £1.3 billion in tax breaks to the UK oil and gas industry, Mexican president Enrique Peña Nieto visited Aberdeen to gain greater understanding of the city’s achievements and speak to business leaders.
His government signed memoranda of understanding on energy cooperation with the UK and a steering group will be established to share information.
This comes as predicted spending for global offshore projects is set to increase from 2018 onwards. An estimated 16 percent will be in Latin America, while 25 percent will be in Asia.
There is no question that when boards and owners adjust to the new oil and gas world, business will thrive. The doors are set to open wider next year. Oil majors have already settled on deals in Mexico after state-owned Pemex’s first round of bidding.
The nation wants external help and so far has not been short of offers.
Of the top 15 projects in 2016, we know that seven are in Brazil. Industry and academic links are strong between Aberdeen and Brazil, which is set to become the world’s sixth largest oil and gas producer by 2035.
This was highlighted by a UKTI supported trade mission to the nation last year, with visits to energy hubs and major shipyards with an appetite for new technology and innovation.
The skills honed in the North East of Scotland are transferable to all emerging locations; people are used to adapting quickly and making the most of opportunities whether they are in Shetland or Sakhalin, the Gulf of Mexico or the Gulf of Guinea.
Oil and gas wells will be producing somewhere in the world for a very long time to come. International business continues to rise and this will be evident at OTC Houston.
With the established networks within this industry there is always guidance on hand, whether logistical, legal or financial.
Ian Williams, is a partner and chairman at Campbell Dallas
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